News and Articles related to City of Varna
Current date: 2010-02-09 10:30

Real Estate Agencies Go Bankrupt

Thousands of Varna brokers that deal with vacation homes stopped work in the last months, "Narodno delo" writes.

The number of bankruptcies is increasing, the local association of real estate signals. The number of working firms in the industry is expected to decrease significantly by the end of the year, experts forecast. According to them this tendency started after the ascending period of real estate deals.

The crisis on the local market was felt the most in the sales of vacation homes. This is why mostly agencies that have concentrated in this market are declaring bankruptcy, people from the association explained. The negative influence on deals is mainly exerted by the decrease of British, Irish buyers, the over-construction on the Bulgarian coast, which put off many potential foreign clients.

There are 500-700 agencies in Varna. Bankruptcies affect not only the so-called domestic brokers and small dealers, data shows. Some comparatively big companies, that service Western European clients, are already facing the same problems.